Exelixis Q3 2026 Revenue Rises 10% on Cabozantinib Growth

Exelixis reported a 10% year-over-year increase in third-quarter 2026 revenue as continued growth of its cabozantinib franchise lifted product sales and earnings. The oncology drugmaker maintained its full-year revenue and spending forecasts while narrowing its expected cost-of-goods-sold range and lowering its projected effective tax rate.

Total revenue rose to $658.7 million from $597.8 million a year earlier and increased 5% from the second quarter. Cabozantinib net product revenue reached $604.9 million, up about 11% year over year, while collaboration revenue was $53.8 million, including $51.8 million in cabozantinib royalties.

GAAP net income increased 13% to $218.1 million, or $0.85 per diluted share, compared with $193.6 million, or $0.69 per share, in the prior-year quarter. Non-GAAP net income was $240.2 million, or $0.94 per diluted share, excluding stock-based compensation net of tax effects.

The increase in quarterly GAAP net income from the second quarter primarily reflected higher revenue, partly offset by increased operating expenses and a larger income tax provision, Exelixis said. Diluted earnings per share also benefited from a lower weighted-average share count following stock repurchases.

Cabozantinib growth supports commercial performance

Exelixis said cabozantinib generated $818 million in global franchise net product revenue during the quarter, an increase of 11% from a year earlier, including $605 million in the United States. The company reported year-over-year growth in both renal cell carcinoma and neuroendocrine tumor indications.

CABOMETYX held approximately 49% of the measured tyrosine kinase inhibitor prescription market in the third quarter, up from 46% a year earlier. Total prescription volume increased 13%, compared with 6% growth for the broader TKI market tracked in the presentation. Exelixis described CABOMETYX as the leading prescribed TKI in renal cell carcinoma and the leading oral therapy in second-line and later neuroendocrine tumors, where it achieved more than 50% oral-class share during the quarter.

The company attributed part of its 2026 volume growth to the neuroendocrine tumor launch. More than 1,000 CABOMETYX prescribers in that indication have been activated since launch, and Exelixis has expanded its gastrointestinal oncology sales team to support further adoption and prepare for potential zanzalintinib indications.

Outside the United States and Japan, partner Ipsen recorded $199.6 million in cabozantinib franchise net product revenue. The related royalty to Exelixis was $49.1 million, with Ipsen entering the 26% royalty tier during the quarter.

Expenses rise as pipeline investment continues

GAAP research and development expense was $209.5 million, up 5% year over year but down 1% sequentially. The quarter-over-quarter decline primarily reflected lower licensing and collaboration costs, partly offset by higher clinical trial expenses. Non-GAAP R&D expense, excluding stock-based compensation before tax effects, was $198.4 million.

GAAP selling, general and administrative expense increased 25% from a year earlier and 5% from the second quarter to $154.6 million, mainly because of higher legal, advisory and marketing expenses. Non-GAAP SG&A expense was $136.9 million.

Total GAAP operating expenses rose 8% year over year to $390.3 million. Cost of goods sold increased 41% to $26.2 million. Exelixis ended the quarter with $1.40 billion in cash, cash equivalents and marketable securities, down 11% from a year earlier but up 1% sequentially.

The company repurchased $249.9 million of common stock during the quarter, retiring 4.5 million shares at an average price of $55.77. Exelixis completed a previous $750 million repurchase program in May and is executing another $750 million authorization through 2027.

Full-year revenue outlook maintained

Exelixis maintained its 2026 GAAP guidance for total revenue of $2.50 billion to $2.55 billion and net product revenue of $2.30 billion to $2.35 billion. The forecast does not include revenue from a potential U.S. approval and launch of zanzalintinib in colorectal cancer.

The company continues to expect R&D expense of $825 million to $875 million, including $50 million of stock-based compensation, and SG&A expense of $575 million to $625 million, including $75 million of stock-based compensation. It now expects cost of goods sold to equal approximately 4% of net product revenue, compared with the previous range of 3.5% to 4.5%.

Exelixis reduced its expected effective tax rate to 16% to 18% from 21% to 23%. Management said it remains focused on funding mission-critical R&D while managing expenses and returning capital through share repurchases.

Zanzalintinib remains the top R&D priority

Exelixis identified zanzalintinib as its next potential oncology franchise and highest R&D priority. The U.S. Food and Drug Administration has accepted the company’s application for zanzalintinib in combination with atezolizumab for third-line and later metastatic colorectal cancer, with a target action date of March 3, 2027.

The company estimates that the 2026 third-line and later metastatic colorectal cancer setting includes about 23,000 patients and represents a roughly $1.5 billion addressable market using contemporary branded-drug pricing. Exelixis said approximately 70% of its potential colorectal cancer prescriber targets already overlap with CABOMETYX targets, while about 90% are located at the same institutions.

Beyond the initial colorectal cancer opportunity, seven potentially label-enabling zanzalintinib studies are underway. Topline results from the phase 3 STELLAR-304 study in first-line non-clear cell renal cell carcinoma are expected in the first quarter of 2027; positive findings could support a second zanzalintinib regulatory filing.

Other programs include STELLAR-311 in advanced neuroendocrine tumors, STELLAR-316 in resected stage II or III molecular residual disease-positive colorectal cancer, and STELLAR-201 in recurrent meningioma. Exelixis is also working with Merck on two pivotal renal cell carcinoma trials combining zanzalintinib with belzutifan. A phase 2 study in squamous non-small cell lung cancer began in October 2026, while additional cohorts are evaluating zanzalintinib in metastatic castration-resistant prostate cancer and bladder cancer.

The early-stage pipeline includes small molecules, bispecific antibodies and antibody-drug conjugates. Exelixis said XL558, a selective SSTR2 agonist, was recently designated a development candidate, with a potential investigational new drug application by the end of 2026.

The outlook remains subject to regulatory and clinical-development uncertainty. The FDA could seek additional information, extend its review or decline to approve zanzalintinib. Other identified risks include potential clinical failures, adverse safety findings, competition, reimbursement and market-acceptance challenges, reliance on partners and third-party suppliers, intellectual-property protection, and the cost of research, licensing and commercialization activities.